World Gold Council: prices stabilize
The World Gold Council said on Monday that that gold prices began to stabilize after the Federal Reserve in December announced it would scale back its economic stimulus program.
"Therefore, while the gold market may encounter challenges in 2014, we expect it will also open opportunities for many investors who are waiting on the sidelines while the gold price stabilizes," the organization wrote in a recent commentary.
In the meeting, the organization said the all-in production costs for gold miners is around $1200 an ounce. About 30% of the gold mining industry becomes unprofitable if prices "sustainably" fall below that threshold, the council estimates.
The gold price recovered by 3% in the first month of 2014, following a sharp 30% fall in 2013. Bullion is now trading around $1260 per ounce.